Thank you for the video. How do the margin requirements on small future options evolve as price and/or volatility change? Do they always remain lower than ETF requirements ?
..oh, and one more recommendation: I am currently shortselling index options (S&P, Nasdaq) as a hedge for my stock portfolio, but I would be interested to learn more about trading options on stock indices. Would you kindly consider to address this in one of your future (...no pun intended..) sessions? Thank you
Thank you for this video, Tony. But why do you calculate "yield" on "margin"? My understanding of yield would be "return relative to risk exposure". But the risk exposure is not the margin amount but the full amount of capital required. And if you follow this calculation, yield on GLD is in fact higher than yield on SPRE.
From a textbook perspective you are correct, but we typically can make the assumption that that Gold is not going to zero over a 30-day holding period. Because of this, there is no need to consider the full capital value of the notional contract. For example if gold trades within a 10% trading range over month, 95% of the time, and the margin requirement is 10%, you gain a 5x of capital efficiency with SPRE over GLD. You’re simply locking up too much capital to place the same trade that you can use elsewhere such as in a liquid index fund.
Hi Tony, Thanks for all your excellent educational presentations on trading. I signed up to your platform several months ago and enjoy the benefits. Can you however explain, in very clear terms, with examples, what an assignment means for options on futures? I mean, give us examples instead of terminology. Many thanks.
Trading futures options is a purely phenomenal opportunity for Growth Mindset People!
why do u compare GLD vs. SPRE, instead of much popular SPY vs. ES?
Thank you for the video. How do the margin requirements on small future options evolve as price and/or volatility change? Do they always remain lower than ETF requirements ?
..oh, and one more recommendation: I am currently shortselling index options (S&P, Nasdaq) as a hedge for my stock portfolio, but I would be interested to learn more about trading options on stock indices. Would you kindly consider to address this in one of your future (...no pun intended..) sessions? Thank you
We will take this into consideration, surely. Thank you!
Does fidelity allow Options on Futures? If not can you get them to offer it - since I think you are working for them
Seems like Tasty trade no longer have Small Futures contracts. Any alternatives with more available options on futures?
Thx for the videos, do you have any back testing to show with these strategies
Thank you for this video, Tony. But why do you calculate "yield" on "margin"? My understanding of yield would be "return relative to risk exposure". But the risk exposure is not the margin amount but the full amount of capital required. And if you follow this calculation, yield on GLD is in fact higher than yield on SPRE.
From a textbook perspective you are correct, but we typically can make the assumption that that Gold is not going to zero over a 30-day holding period. Because of this, there is no need to consider the full capital value of the notional contract. For example if gold trades within a 10% trading range over month, 95% of the time, and the margin requirement is 10%, you gain a 5x of capital efficiency with SPRE over GLD. You’re simply locking up too much capital to place the same trade that you can use elsewhere such as in a liquid index fund.
IBRK says the options on small futures is not yet available. I could only see option on small Precious metal but not Small US dollars at this moment.
Hi Tony, Thanks for all your excellent educational presentations on trading. I signed up to your platform several months ago and enjoy the benefits. Can you however explain, in very clear terms, with examples, what an assignment means for options on futures? I mean, give us examples instead of terminology. Many thanks.
They are normally cash settled.
How much I need to be able to make 2k week and if I join u site will I be able to
Yes, easily. Take 2.6 mils and buy 4 week T-bills using a ladder strategy . Easy peasy.